We determine if an arrangement is a lease at inception. Our operating lease assets are separately stated in operating lease right-of-use ("ROU") assets and our financing lease assets are included in other assets on our condensed consolidated balance sheets. Our lease liabilities are included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets. We have elected not to recognize an ROU asset and lease liability for leases with terms of twelve months or less.

Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Most of our leases do not provide an implicit rate; therefore, we use our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term based on the information available at commencement date. Our lease ROU assets exclude lease incentives and initial direct costs incurred. Our lease terms include options to extend when it is reasonably certain that we will exercise that option. All of our leases have stated lease payments, which may include fixed rental increases. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

Our leases are for corporate, research and development and sales and support offices, manufacturing and distribution facilities, device service centers and certain equipment. Our leases have original lease terms of one year to fifteen years, some of which include options to extend the leases for up to an additional five years. For all of our leases, we do not include optional periods of extension in our current lease terms because we determined the exercise of options to extend is not reasonably certain.


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Operating lease cost	$	4,202	$	5,103	$	8,347	$	10,129
Impairment of operating lease ROU assets (1)	7,922		—		7,922		—
Finance lease cost — interest	106		107		223		161
Finance lease cost — reduction of ROU assets	515		623		1,276		812
Short-term lease cost	—		5		—		7


Total lease cost	$	12,745	$	5,838	$	17,768	$	11,109

(1) During the three and six months ended June 30, 2026, we recorded non-cash impairment charges to reduce the carrying value of operating lease ROU assets to their estimated fair values, driven by the early exit of the facilities as we integrate the Smiths Medical business acquired in 2022. The impairment charges are included in restructuring, strategic transaction and integration expense in our condensed consolidated statements of operations and as a non-cash add back to net income included in the Other line item within net cash provided by operating activities on the condensed consolidated statement of cash flows.

Interest expense on our finance leases is included in interest expense, net in our condensed consolidated statements of operations. The reduction of the operating and finance ROU assets is included as noncash lease expense in costs of goods sold and selling, general and administrative expenses in our condensed consolidated statements of operations.


	Six months ended June 30,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,229	$	8,906
Operating cash flows from finance leases	$	223	$	161

ROU assets obtained in exchange for lease obligations:
Operating leases	$	3,356	$	11,654
Finance leases	$	1,451	$	1,713

Non-cash operating lease terminations, modifications, and impairments:
Operating lease ROU assets derecognized	$	(3,976)	$	—
Operating lease liabilities derecognized	$	(3,853)	$	—
Reduction in operating lease ROU assets due to impairment	$	(7,922)	$	—

The following table presents the supplemental balance sheet information related to our operating leases (in thousands, except lease term and discount rate):


	As of
	June 30, 2026			December 31, 2025
Operating leases
Operating lease ROU assets(1)	$	38,610		$	54,470

Accrued liabilities	$	13,221		$	13,825
Other long-term liabilities	36,626			43,951
Total operating lease liabilities	$	49,847		$	57,776

Weighted-Average Remaining Lease Term
Operating leases	5.0 years			6.3 years

Weighted-Average Discount Rate
Operating leases	5.68		%	5.40		%

(1) During the three and six months ended June 30, 2026, we recorded non-cash impairment charges of $7.9 million to reduce the carrying value of operating lease ROU assets to their estimated fair values, driven by the early exit of the facilities.


	As of
	June 30, 2026			December 31, 2025
Finance leases
Finance lease ROU assets (other assets)	$	5,853		$	5,599

Accrued liabilities	$	2,357		$	2,095
Other long-term liabilities	3,744			3,729
Total finance lease liabilities	$	6,101		$	5,824

Weighted-Average Remaining Lease Term
Finance leases	2.8 years			3.0 years

Weighted-Average Discount Rate
Finance leases	6.45		%	6.29		%

As of June 30, 2026, the maturities of our operating and finance lease liabilities for each of the next five years and thereafter are approximately (in thousands):


	Operating Leases		Finance Leases
Remainder of 2026	$	8,166	$	1,400
2027	13,952		2,448
2028	10,645		1,868
2029	8,195		850
2030	4,847		93
2031	4,177		—
Thereafter	7,561		—
Total lease payments	57,543		6,659
Less imputed interest	(7,696)		(558)
Total	$	49,847	$	6,101